Legislation repealing Tennessee's gift tax has been sent to Gov. Bill Haslam, who has endorsed the idea and adjusted his state budget plan to cover the anticipated $15 million per year in lost revenue.

The bill (SB2777) was approved 30-3 in the Senate Monday evening. The House approved it 79-10 Tuesday. The final version makes repeal retroactive to Jan. 1, 2012, which House Finance Committee Chairman Charles Sargent said could mean a refund for anyone who has paid the tax this year — though most wouldn't file 2012 taxes until next year.

Sponsors said Tennessee is one of the last state's to retain a stand-alone tax on gifts. Sargent, R-Franklin, said only Connecticut will still have such a levy once the bill is signed into law.

The current law has a $13,000 exemption. The tax rate applies to gifts above that value at a rate ranging from 5.5 percent to 16 percent; the bigger the gift, the higher the rate.

Senate Finance Committee Chairman Randy McNally, R-Oak Ridge, who sponsored the bill in the Senate, said that "an astute tax practitioner" can legally avoid the tax as it stands now so that it has been "primarily a trap for the unwary."

Also, McNally said that the gift tax was initially imposed to capture revenue from wealthy people transferring funds to avoid paying or reduce inheritance taxes that would follow their deaths.

Legislation passed earlier — also sponsored by McNally and Sargent — will repeal the state's inheritance tax in stages with full elimination of the levy on Jan. 1, 2016.

TRA overhaul: The House granted the governor's wish for restructuring of the Tennessee Regulatory Authority Monday as Republicans rebuffed Democratic contentions that the overhaul is unnecessary and unwise.

The bill, SB2385, was approved 60-28 by the House. The Senate, which had approved the measure earlier, sent it to the governor's desk after concurring on House amendments — including one that says part-time directors of the new agency will be given state health care coverage as well as a $36,000 salary.

House Republicans rejected several Democrat-sponsored amendments, including one that would have replaced this year's Haslam TRA reform plan with last year's Haslam TRA reform plan, which did not pass.

Last year's version called for replacing the present four-member TRA board with three full-time members and a full-time executive director. This year's version would set up a five-member part-time board with a full-time executive director.

House Minority Leader Craig Fitzhugh also criticized the Haslam administration for secrecy about the process used to develop the proposal. The reference was to the administration refusing to fully comply with a Chattanooga Times-Free Press request for information on the top-to-bottom review that led to drafting of the proposal.

Campaign finance: Rep. Glen Casada Tuesday withdrew a bill that would have repealed the aggregate limit on the amount of money state candidates can collect from political action committees and corporations.

The bill (HB3281) passed the Senate last year and Casada won approval Monday from the House State and Local Government Committee, setting the stage for a House floor vote in the waning hours of the session. But on Tuesday, the Williamson County Republican changed his mind after talking with other legislators.

"It's the end of the year and members are tired," he said. "I just think they're not ready to take on another issue now." But he added, "Next year for sure."

Campus religious groups: Legislators have approved a bill aimed at prodding Vanderbilt University into changing its so-called "all-comers policy" for student organizations after a round of spirited — and perhaps spiritual — debate.

Both sides quoted scripture in a House argument over SB3597, which as introduced would have prohibited state universities from enacting a policy like the one in place at Vanderbilt. Spokesmen for the University of Tennessee and the Board of Regents say they have no such policy.

Under the Vanderbilt anti-discrimination rule, student organizations — except sororities and fraternities — are required to admit any student and let them take leadership positions regardless of religious belief. Christian groups on campus have protested that this has led to people holding contrary believes joining their organizations and seeking leadership positions.

The bill declares that student organizations based on religion may exclude people of contrary faith.

An amendment makes the proposed new law cover Vanderbilt — but no other private institutions in the state — by declaring it applies to private schools receiving more than $24 million in state funds. Vanderbilt is apparently the only private school that meets that threshold.

Democrats critics said the bill wrongly puts the state in the position of dictating to a private school and, to quote Rep. Mike McDonald of Portland, "complete nonsense." They noted the bill includes no penalty for Vanderbilt if it ignores the new law.

Republican supporters said Vanderbilt is wrongly discriminating against Christians.